Italy Takes New Tack on Political Deadlock

By

Alessandra Galloni And

Stacy Meichtry

Updated March 30, 2013 2:07 p.m. ET

ROME—Italy's president on Saturday said Mario Monti's government should remain in power while a group of experts hashes out a blueprint of overhauls for a future government to tackle, an unusual gambit that essentially buys time to resolve the country's deep political divisions.

Giorgio Napolitano, speaking after weeks of inconclusive consultations among political parties aimed at trying to form a new government, sought to reassure...